11 Jan 2013

New US Treasury Secretary named

3:17 pm on 11 January 2013

President Barack Obama has formally nominated White House Chief of Staff Jack Lew as the new US Treasury Secretary.

Mr Obama said on Thursday he wanted Mr Lew to replace Timothy Geithner, who does not wish to serve a second term in the post.

The appointment is expected to be confirmed by the Senate.

Mr Lew, 57, will take over as the Obama administration faces more Congressional battles with the Republican Party over the federal budget.

The BBC reports his nomination is part of cabinet reshuffle for Mr Obama's second-term.

On Wednesday, Secretary of Labor Hilda Solis announced she would resign.

Attorney General Eric Holder, Health Secretary Kathleen Sebelius and Veterans Affairs Secretary Eric Shinseki will stay.

On Monday, Mr Obama nominated former Republican Senator Chuck Hagel to replace Leon Panetta as defence secretary and picked White House counter-terrorism adviser John Brennan to be the next director of the CIA.

In December last year, he announced that Massachusetts Senator John Kerry would be the next candidate for Secretary of State, replacing Hillary Clinton.